High street banks lose £100bn in deposits as UK savers shift to online rivals

High street lenders have been criticised for being too slow to raise savings rates. Photograph: True Images/Alamy

High street banks across the UK have lost the equivalent of £100bn in savings as more customers turned from traditional lenders towards online banks and building societies, figures show.

Experts at KPMG said rival banks – including new challenger banks, specialist lenders and building societies – had lured customers away from incumbent banking groups with higher savings rates. The traditional banks’ market share in deposits dropped from 84% in 2019 to 80% in 2024, it added.